Which diagram provides an accurate example of how the government uses open market operations?

a. The government buys more treasury bonds than it sells. The money supply decreased.

b. the government buys more treasury bonds than it sells. Interests rates rise

c. the government buys more treasury bonds than it sells. banks charge less to consumers to borrow money.

d. the government sells more treasury bonds than its buys. the money supply is decreased

Question

History

Madison

30 August, 04:53

Which diagram provides an accurate example of how the government uses open market operations?

a. The government buys more treasury bonds than it sells. The money supply decreased.

b. the government buys more treasury bonds than it sells. Interests rates rise

c. the government buys more treasury bonds than it sells. banks charge less to consumers to borrow money.

d. the government sells more treasury bonds than its buys. the money supply is decreased

+2

Answers (2)

Know the Answer?

Markus Copeland · Answer 1

which diagram provides an accurate example of how the government uses open market operations

c The government buys more treasury bonds than it sells banks charge less to consumers to borrow money.

Ayana · Answer 2

Answer: The Government buys more Treasury bonds than it sells, The Money supply is increased

Explanation: answers